Air Canada parent weighs loan to carrier

Air Canada's parent company is receptive to joining a group of lenders to help out the cash-strapped airline.

Robert Milton, ACE Aviation Holdings Inc.'s chief executive officer, said Friday that a loan could be in the cards as he looks to Air Canada to stage a comeback. "On a personal level, I look to be supportive. It's a great airline with great people, and so I'm optimistic as to their future," Mr. Milton said after ACE's annual meeting in Montreal.

ACE, which owns 75 per cent of Air Canada, is estimated by analysts to have at least $150-million available to lend to the country's largest carrier. Ottawa may contribute $200-million of the $600-million in loans being sought by Air Canada, while other lenders could include loyalty program Groupe Aeroplan Inc.

ACE shareholders overwhelmingly voted in favour of an 11-member slate of nominees for the board of directors, including Greg Boland, CEO of West Face Capital Inc., which earlier this year sought to oust Mr. Milton and other directors. Mr. Boland has been seeking assurances that the interests of ACE common shareholders be protected, no matter what ACE decides.

"We continue to evaluate all of the alternatives with a view to achieving an optimal outcome," Mr. Milton said during his presentation.

Dispatchers and customer service agents have ratified their tentative labour deals at Air Canada. Unions representing mechanics, flight attendants and pilots will be holding ratification votes by mid-July.